My trusty spreadsheet found that the Golden State could fall one notch in 2024 to fast-growing India in this theoretical ranking of economic heft, as measured by Gross Domestic Product – a broad measure of business output.In 2023, only four national economies were larger than California, by GDP math – the US at $27 trillion , China at $17.7 trillion, Germany at $4.4 trillion, and Japan at $4.2 trillion.
So, if California produces the 14.5% share of US output it has averaged during the past two years, the Golden State would have $4.05 trillion in GDP in 2024. For 2023, the nation’s best growth was found in North Dakota at 5.9%. Delaware’s 1.2% drop was the worst. And California’s two big economic rivals expanded swiftly – Texas’ 5.7% was the nation’s No. 2 for growth, while Florida’s 5% was No. 7.California’s business output grew at a 3.1% annual pace in the fourth quarter. Still, that ranked No. 29 among the states and trailed the nation’s 3.4% business expansion.
Look, many California businesses are still recovering from the harsh business restrictions of the pandemic era. Other businesses must adapt to the new normal of post-coronavirus life. Retail was No. 2 for California growth, reflecting a curiously upbeat shopper. Professional services – primarily high-paying white-collar jobs – did well, too. State and local government spending also provided a significant boost. But this economic niche faces an uncertain future. Many governments expected to trim spending to meet steep budget deficits.